I recently rode a 93-mile mountain bike that tested my endurance and mindset.
There was a big climb called Snake Mountain, around mile 65.
As I climbed with a half mile left, riders around me dropped and walked their bikes.
I could feel the pain in my legs and then a shift in my mind.
With riders walking around me and the pain of a half mile left, my mind told me to walk.
It took me to a dark place, trying to force me to quit.
I needed a bigger reason. I started thinking about my kids and how I needed to finish.
I pushed through and reached the top while a few guys in our peloton had to walk.
It felt amazing to make it, and not only that, I felt energized to take on the rest of the miles.
So, if you are on Strava, follow me HERE to watch my progress.
Why Darkness is Inevitable?
When it comes to investing or running companies, there will always be moments when everything comes into question.
Whether the bull market is over or we are at the bottom of a bear market.
In the 2000s, I invested in land with no cash flow and no finances to back it up.
I learned quickly what happens when the prices start going in the wrong direction.
There are things out of our control, like FED rate hikes, that can question your whole thesis.
I went through a black swan event like COVID-19, which caused the market to panic, and crypto dramatically sold off.
Everyone in the market and even family members questioned me if it was a fad.
If you are in the game long enough, these moments will come.
The Mindset of the 1%
So, what differentiates the average person from the top 1%?
The best among them understand that these dark periods are not obstacles but opportunities.
They learn to embrace them, recognizing they are often just momentarily in the scheme of life.
Each setback contains valuable lessons to build upon and allows us to build character.
If it weren’t for the real estate crash, I wouldn’t have had a life lesson in managing debt on investments.
This last cycle, I knew the top was near, so I stayed away.
While most others will quit or get off their bike, the persistent gain ground and increase net worth.
Strategies to Push Through
You must always maintain perspective. Zoom out.
Focus on long-term trends rather than short-term fluctuations.
This is why I have moved more towards a longer time horizon with my thesis.
The longer the time horizon, the less attention you pay to short-term noise.
Revisit your thesis statement; is it still valid? If so, take a step back and revisit your strategy.
You will need to embrace discomfort and recognize that feeling uncomfortable often means you are growing.
Go and seek support from other high achievers like those in our Investpreneurs Community.
They understand the journey and similar pain. This is why we launched it.
Historical Examples of Pain
The 2000’s real estate crash, the COVID sell-off, and chasing yield have taught me lessons I won't forget.
Amazon stock lost 90% of its value in the dot-com crash, but those who held it saw returns of over 100,000%.
Berkshire Hathaway's stock price fell by 50% multiple times over the decades.
Bitcoin has gone through several 80% drawdowns only to reach new highs each time.
The real estate crash of 2006-2010 with major drawdowns and foreclosures nationwide.
There are countless other ones where I could go on and on.
Conclusion
The game is won in the dark, during the time with the greatest opportunities.
People panic and give up; their minds tell them why they shouldn’t.
Those who persevere and break through the darkness make it to the top.
Controlling your mindset will make you the best investor and individual possible.
You may not be pushing your boundaries if you haven’t reached moments of darkness.
